India economy to grow 8pc in FY ’11

Sunday, January 03, 2010
NEW DELHI: The Indian economy will expand 8 per cent in 2010/11 after growing between 7 and 7.5 per cent in the current fiscal year to end-March, The Times of India reported on Saturday, quoting the prime minister’s economic adviser C Rangarajan.

“There is reason why I expect 8 per cent growth in the next fiscal (year). Agriculture would improve with normal monsoon and it would add 0.5-1 per cent in the GDP growth,” the newspaper quoted him as saying.

India’s economy grew an annual 7.9 per cent in the quarter through September, its fastest in 18 months, prompting the finance ministry to revise the growth forecast for the current fiscal year to around 8 per cent from 7.0 per cent.

The economy expanded 6.7 per cent in 2008/09 (April-March), slower than the 9 per cent or more in the previous three years.

Rangarajan also said the economy would return to an annual growth rate of 9 per cent in the fiscal year to end-March 2012 on the back of an improvement in the world economy and global trade.